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Philadelphia sues online travel agencies
The city of Philadelphia is suing 17 online travel agencies, saying they aren’t paying their full share of the hotel occupancy tax.
The complaint says such well-known online companies as Expedia and Travelocity contract with hotels for discounted rooms and then sell the rooms to the public at marked-up prices.
The suit also alleges the agencies collect and pay the city’s 7% hotel tax based on discounted rates rather than the higher prices charged to consumers.
The city of Los Angeles filed a similar suit last year.
A spokesman for the city said it was not known how much Philadelphia was owed.
The city hired a local law firm to pursue the matter after the issue was brought up by a city councilman. The local firm of Berger & Montague P.C. has taken the case on a contingency basis of 30%, according to the Philadelphia Inquirer.
Report by David Wilkening
David
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